Governor Baswedan Raises Minimum Wage 5.1%

TheIndonesia.id - Jakarta Governor Anies Baswedan has decided to revise and raise the minimum wage in the province up to 5.1 percent to reach Rp4,641,854, ($331.56 with 1$ equals Rp14,000) from the initial increase of 0.85 percent to Rp4,453,935.

“With the increase in the minimum wage, we hope that the purchasing power of people or workers would not decrease,” Baswedan noted by Antara news agency, Saturday, December 19, 2021.

Thus, with the 5.1-percent rise, the province’s minimum wage will increase by Rp 225,667 ($16.11) in 2022, from the 2021 minimum wage of Rp4,416,186. The revised increase is also higher than the initial 0.85-percent increase, which is Rp37,749.

The governor noted that the government decided to revise the raise based on a study conducted by BI that forecasts Indonesia’s economic growth to lie in the range of 4.7 to 5.5 percent in 2022.

Inflation is projected to be under control, at three percent, or in the range of two to four percent. Likewise, the Institute for Development of Economics and Finance (INDEF) study projects Indonesia's economic growth at 4.3 percent in 2022.

Baswedan explained that the decision was also based on a review and rediscussion with all related stakeholders, with the spirit of prudence in the midst of the economic pace of Jakarta, which is starting to move.

"With an increase of Rp225 thousand per month, workers can use the additional amount to fulfilling their daily needs," he added.

The governor emphasized that the decision to increase Jakarta Province's minimum wage upholds the principle of justice for workers, companies, and the Jakarta provincial government.

"We assess this 5.1-percent rise is adequate for workers and still affordable for employers. This will also increase the people's purchasing power. This is a form of appreciation for workers and also enthusiasm for the growth of the economy and the business world," he noted.

Apart from raising the province's minimum wage, the Jakarta government also strives to improve the workers' welfare and reduce their cost of living by providing assistance in transportation services, providing affordable food, and personal education assistance for the workers' families.